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Thursday, April 17, 2014

STI ETF RSP (Apr 2014)

Normally I would buy 100 units of Nikko STI ETF each month. For this month, I have done something different. Previously, I am already holding 900 units of Nikko STI ETF.For this month, instead of buying 100 units of Nikko STI ETF to make up 1000 units, I sold my existing 900 units and bought 1 lot (1000 units) of the STI ETF instead.

The STI ETF gives slightly higher dividend and has a higher trading volume. The pros of the Nikko STI ETF is its lot size.

Going forward, I will still buy 100 units of Nikko STI ETF per month. Once I have 1000 units, I will "convert" it to the STI ETF instead. In the future, when the board lot gets reduce to 100 units per lot, I will use STI ETF for my rsp instead as well.